Recent studies show that 37% of Americans have less than $ 1,000 in their emergency savings, and 13% have no emergency savings at all.
CHARLOTTE, North Carolina – An alarming 53% of Americans are currently in credit card debt, with an average balance of around $ 5,000. But there is good news to report in that number: fewer people are taking on more debt, even with the ongoing COVID-19 pandemic.
That being said, debt can still really undermine financial health: recent studies show that 37% of Americans have less than $ 1,000 in emergency savings and 13% have no emergency savings. Credit card debt can be both good and bad; credit cards help create credit, but the downside to not paying it off is the high interest rates.
“You can save a lot of money”: How to lower the interest rate on your credit card
âThe 0% balance transfer cards were a bit gone, but they’re making a comeback,â he said.
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With good credit, you can get a personal bank loan consolidate debts and pay around 5% interest, which is less than usual; average credit card interest rates are around 16.2%. You can get an interest free card, but read the conditions carefully. If you don’t pay it back on time, a high interest rate will apply.
âYou just need to be disciplined about it,â Rossman added.
The keyword: discipline. It’s fun to get into debt, but it’s much worse to try to get rid of it. It is painful and it takes a long time. You have options, start by figuring out how many and for how long.
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WCNC Charlotte always asks “where’s the money?” If you need help contact the Defenders team by sending an email [email protected].